(WTNH) — Financial professional Roger Cowen explains how being thankful relates to our money.
BE THANKFUL FOR COMPOUNDING INTEREST
- Compound interest is a saver’s best friend. It plays a huge part in reaching your retirement goals.
- In order to capitalize on compound interest, you need to keep the money in the account and resist the temptation to withdraw.
- On the flip side, if you rack up debt, compound interest will add up, making it difficult to pay it off.
BE THANKFUL FOR ROTH CONVERSIONS
- Converting a traditional IRA to a Roth IRA has the potential to lessen your tax burden later in life.
- Talk with your financial professional to see if this a good option for you. With the recent tax law changes, many people may find themselves in a lower tax bracket this year.
- Although you don’t get upfront tax breaks on a Roth IRA, your withdrawals are tax-free as long as you are older than 59 ½.
BE THANKFUL FOR CUSTOMIZED RETIREMENT STRATEGIES
- Having a plan in place to build your retirement savings is crucial. The biggest concern we hear from our clients is they are afraid they will run out of money in retirement.
- Start thinking about what you want to do, from trips to daily expenses, and how much that is going to cost you.